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Shares of jewellery companies have rallied up to 25% on the BSE in early morning trade after the Titan Company reported a strong set of numbers for the quarter ended September 2017 (Q2FY18). Titan Company zoomed 25% to Rs 823 in intra-day trade, after the company’s consolidated net profit uincreased 71% at Rs 305 crore in Q2FY18, driven by jewellery business.
It had reported profit of Rs 178 crore in corresponding quarter last fiscal. Revenue from operations during the quarter grew 29% year-on-year (y-o-y) to Rs 3,378 crore from Rs 2,620 crore in the same quarter year ago, the company said in press release. Jewellery segment, which contributed 80% to total revenue, has registered a strong 37% growth at Rs 2,710 crore on y-o-y basis, with its EBIT (earnings before interest and tax) growing 66% y-o-y at Rs 348 crore during the quarter. “Our jewellery business was impacted by the new Prevention of Money Laundering Act (PMLA) regulations at the beginning of the quarter but the roll back, just before the festive season provided the boost to the business,” said Bhaskar Bhat, managing director of the company. At 09:37 AM; Titan Company was up 15% at Rs 761 on the BSE, as compared to 0.11% decline in the S&P BSE Sensex. The trading volumes on the counter jumped more than eight-fold with a combined 8.25 million shares changed hands on the NSE and BSE so far. Tribhovandas Bhimji Zaveri (TBZ), PC Jeweller, Gitanjali Gems, Renaissance Jewellery and Thangamayil Jewellery are other jewellery stocks, up in the range of 4% to 7% in otherwise subdued market.